With Tax Plan, Donald Is the New Ronald
Wayne Root at LINK> The Blaze
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Someone finally listened. I’ve been searching for the new Ronald Reagan to “Make America Great Again.” I’ve argued in my last four books and hundreds of commentaries that taxes are too damn high on America’s risk-takers, job creators and business owners. I’ve pleaded for a dramatic Reagan-esque tax cut to supercharge the economy and create millions of new jobs.
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Reagan’s tax plan was simple, lower, fairer, flatter with rates of 15 percent and 28 percent. That did the trick. That unleashed an economic tsunami. That’s all Reagan did – cut taxes and regulations. Reagan’s deregulation saved consumers $100 billion per year in lower prices.
President Barack Obama is bankrupting us with higher prices. Hint hint Donald – please give us a plan for dramatically cutting Obama’s regulations next.
Trump’s plan is just like Reagan’s: simple, lower, fairer and flatter. The four rates are 0, 15, 20 and 25 percent, almost identical to Reagan’s, except the top rate is even LOWER! Brilliant.
But Trump has gone one step further. He’s cut the tax rate to zero for couples earning $50,000 or less. If your tax rate is zero and you get to keep everything you earn under Trump, millions of Americans will choose to work, get off the government dole and become productive members of society. Why stay home and collect welfare, if you can go to work and keep everything you make? If the playing field is evened, most self-respecting Americans with pride and work ethic will choose to work. Brilliant.
Trump eliminates the marriage penalty, rewarding marriage and family. Bravo. His plan also eliminates the dreaded Alternative Minimum Tax that has ripped off middle class American taxpayers. And, Trump’s tax plan eliminates the estate tax – so anyone who has worked their whole life to build something and already paid their fair share of taxes on it, can leave it to their children and grandchildren without the greedy government stealing it.
Read more at the link above.
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Trump’s Tax Plan: A Proposal Reagan Would Approve?
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Donald Trump’s plan for tax reform is the most populist so far seen among the presidential candidates. It is also the most faithful to supply-side principles.
Why? Populism in its root meaning is optimism about the ability of people to make decisions affecting themselves. Its opposite, elitism, is optimism about the ability of elites to make those decisions for them.
Unlike most recent Republican plans, Trump avoids single year expensing for corporate investment in new physical capital (machines and buildings). Though rarely highlighted by its advocates, it is so expensive it preempts the ability to cut personal rates very much, without huge projected deficits.
Instead of single year expensing, Trump’s plan cuts business taxes to 15 percent and personal rates to zero, 10, 20, and 25 percent. Among other things, leaving business depreciation the way it is allows Trump to zero out income taxes for a single person earning under $25,000 and a couple under $50,000. This is, to say the least, an attractive prospect for tens of millions of non-rich Americans.
Read more at link above
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By on Grover Norquist blesses Trump's tax plan, brings 'Jobs, jobs, jobs'
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Republican presidential candidate Donald Trump's newly released tax plan was given a blessing Monday by the nation's biggest anti-tax advocate, Grover Norquist, who said it would produce "jobs, jobs, jobs."
As Trump revealed his plan at a press conference, Norquist's influential Americans for Tax Reform released its review that Trump's plan is "consistent" with the advocacy group's "Taxpayer Protection Pledge."
Tax reform is an issue that both Democrats and Republicans agree on, but we’ve been talking about taxes and reforming the code for years with no action. Another radical notion (I mean that in a good way) is that we sunset the tax code. Colin Hanna of Let Freedom Ring, a nonpartisan, non-profit organization that is the brainchild of this policy, said the whole 74,000 page-plus code should expire in 2019, which should be enough time to have a serious national conversation about this issue. Maybe Trump’s plan is a good foundation in the debate.
Americans for Tax Reform’s Grover Norquist came away with some nice things to say about the plan, calling it “perfectly consistent with the Taxpayer Protection Pledge," something that the billionaire business magnate has yet to sign.
Norquist reiterated that point to CBS This Morning, saying Trump’s plan is “pro-growth, it’s not a net tax increase. It will, in fact, be a tax cut, statically scored, and sits comfortably within the parameters” of his organization’s mission.
Read more at the link above
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Donald Trump's tax plan would help the poorest Americans
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Much has been made of the fact that Donald Trump's tax plan is really, really good for Donald Trump. But by raising the point at which people begin to owe taxes and retaining key tax credits, the Republican presidential candidate's tax plan should also put more money in the pockets of the poorest Americans.
Under his plan, single people making less than $25,000 a year and married couples earning less than $50,000 would pay zero income tax.
"They get a new one page form to send the IRS saying, 'I win,'" the plan says. "Those who would otherwise owe income taxes will save an average of nearly $1,000 each."
That's not the full picture, however: Many lower-income Americans benefit from the Earned Income Tax Credit (EITC), which gives taxpayers an additional $503 to $6,242, depending on the number of children they have. And some couples with children can get up to $1,000 per child in credits, further lowering that tax bill.
Taking these factors into account, the Tax Policy Center's Elaine Maag has calculated that those credits would help offset a single person's tax bill until they earned $12,255. A married couple with two kids would have to earn nearly $50,000 before the sum of their tax bill minus any credits they received was greater than $0.
The basic rule of thumb, she explained, is that once credits are taken into consideration, a family with children starts owing taxes once their income is about double the poverty level.
The reason Trump's plan is so good for poorer Americans is because he plans to keep the EITC and Child Tax Credit, his campaign told CBS News. So the point at which people will start paying taxes increases - and they can still collect credits.
| Family type | Income tax kicks in Current law | Income tax kicks in Trump tax plan |
| Single, 0 children | $10,300 | $25,000 |
| Single, 1 child | $17,250 | $25,000 |
| Single, 2 children | $21,250 | $25,000 |
| Married, 0 children | $20,600 | $50,000 |
| Married, 1 child | $24,600 | $50,000 |
| Married, 2 children | $28,600 | $50,000 |
Chart partially based on data from Elaine Maag, Tax Policy Center
Read more at the link above
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Kudlow Trumpets Trump Tax Plan
It beats Bush's proposal and 'nails' corporate tax rate to attract China cash
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The tax plan from the current GOP front-runner trumps the one proposed by former Florida Gov. Jeb Bush, delivering a far more powerful shot in the arm for corporations looking to do business in the United States, financial commentator Larry Kudlow said Wednesday.
It’s simple, Kudlow said on “The Laura Ingraham Show.” While Bush would cut the current 40-percent corporate tax rate to 20 percent, Trump would do him one better, taking the rate to 15 percent. That “Jeb-plus” plan would help reverse trade imbalances with China.
“At 15 percent vs. China’s 25 on corporate tax rate, the USA has a big advantage,” he said. “And I think Trump is right that a lot of capital will flow to the United States from China and elsewhere if we get a 15 percent tax rate … I really think Trump nails that.”
Another advantage to Trump’s plan, Kudlow said, is that it grants the lower 15 percent tax rate to small businesses that file as limited liability corporations and other constructions.
Read more at link above
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Two Cheers For Trump's Pro-Growth Tax Plan
Fiscal Policy: It isn't as ambitious as a flat tax or a national sales tax, but there's a surprising amount of sensible tax policy changes recommended in Donald Trump's tax reform plan released on Monday.
He's proposing the biggest reduction in tax rates since the 1986 Tax Reform Act under Ronald Reagan, and like the Gipper's reforms, this plan would cover the costs by closing loopholes. So, bravo.
Trump would cut tax rates across the board. The highest income tax rate would shrink from about 40% under current law to 25%. The top capital gains tax rate would be reduced to 20% from 23.8%.
The estate tax, now at 40%, would fall to zero. This plan also eliminates the hated alternative minimum tax and the marriage penalty tax imposed on working married couples.
Not many in the media paid attention to his call for a 15% corporate tax — down from the U.S. current world's highest rate of 35% — but this might be the most pro-growth reform of all.
Trump's rhetoric on growth was refreshing, too, coming from a candidate who over the last few months has sounded more populist and even progressive than conservative, at least when it comes to taxes and jobs.
When asked where the revenue would come from to pay for his tax reductions, he answered that the plan would bring more jobs and business to America — and he has history on his side.
He also said, "We have to start cutting costs" of government, and hallelujah for that: A presidential candidate who says that we can let people keep more of their own earnings and finance tax cuts by eliminating the insane waste and incompetence in government spending.
This contrasts with President Obama, who argues that almost all government spending — from food stamps to solar energy subsidies — is a "stimulus."
But as is always the case with Trump, it wasn't all good. Indeed, there are two trouble spots in this plan.
One is his declaration that some 70 million households will not pay income tax under Trump-onomics. That's close to two-thirds of the 110 million or so US households (see chart). Already close to 4 of 10 Americans pay no income tax. Do we really want the top third in America bearing the whole burden?
This approach could build a political tidal wave of support in the future for raising income taxes higher and higher to finance more "free" services from government, because, after all, it's only the rich who are going to pay the tab.
Read More At Investor's Business Daily: http://news.investors.com/ibd-editorials/092815-773141-trump-tax-plan-would-increase-fairness-boost-growth-create-jobs.htm#ixzz3nIfeGLuh
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